Latest news with #CleanEnergyFinanceCorporation
Reuters
3 days ago
- Business
- Reuters
Australia's green bank makes record $2.3 billion in clean energy investments
SYDNEY, July 28 (Reuters) - Australia's green bank on Monday said it invested a record A$3.5 billion ($2.29 billion) in clean energy projects and grid infrastructure last financial year to accelerate the country's transition from fossil fuels to renewables. Australia's coal power generation makes it one of the highest polluting countries per capita in the world. It plans to shut all coal stations by 2038 and has pledged to achieve a target of 82% renewable generation by 2030. But analysts have called for increased investment to meet this goal, achieve net zero emissions by 2050 and ensure energy security. Wood Mackenzie projects Australia is on track to hit only 58% renewable energy generation by the end of the decade. The Clean Energy Finance Corporation, Australia's A$32.5 billion green bank, has a mandate to 'facilitate increased flows of finance into the clean energy sector and to facilitate the achievement of Australia's greenhouse gas emissions reduction targets'. During the 2024-25 financial year, it committed A$4.7 billion, including A$3.5 billion to renewable energy projects and grid infrastructure. The CEFC said it was a 'record' level of investment and more than double the amount of the previous fiscal year. The largest transaction was A$2.8 billion towards a programme to improve Australia's national power grid, including A$2.1 billion for construction of a new electricity transmission link on the country's east coast. The CEFC said it was ramping up investment in clean energy to help Australia meet its renewable energy and emissions targets. 'Australia requires ongoing investment in renewables and long-duration storage, clean energy affordability for consumers and measures to cut emissions,' CEO Ian Learmonth said. 'Investment activity at this scale promises substantial economic and local employment benefits across Australia, strengthening our economy for a net zero future while making critical progress towards decarbonisation.' ($1 = 1.5267 Australian dollars)
AU Financial Review
3 days ago
- Business
- AU Financial Review
CEFC investments hit record $4.7b as grid bill climbs
The head of the federal government's green bank expects investment commitments to scale a new peak this financial year, beating the $4.7 billion record achieved for last year, as long as a commitment is made to construct the Marinus Link power cable between Victoria and Tasmania. Ian Learmonth, chief executive of the Clean Energy Finance Corporation, said that in non-power grid areas, he was optimistic of a further increase in investments, but that the $3.9 billion Marinus Link project was 'the biggest swing factor' for the total for 2025-26.
West Australian
6 days ago
- Business
- West Australian
Dimitri Burshtein & Alex Sanchez: Taxpayer-funded green bank serves ‘grifters and rent-seekers'
The Clean Energy Finance Corporation is one of several off-budget entities operated by the Commonwealth government that, as S&P has observed, are 'increasingly obfuscating Australia's fiscal position and borrowing needs.' It is time to begin an orderly wind-down of the CEFC with the proceeds redirected toward reducing debt and easing the burden of interest payments. Like its Future Fund cousins, the CEFC no longer fulfils a necessary role, if, indeed, it ever served a purpose beyond centralised economic planning. Established in 2012, the CEFC was created to channel finance into the clean energy sector. Initially seeded with $10 billion in borrowed funds, it now manages roughly $30b including $19b earmarked for the Rewiring the Nation initiative. These commitments contribute to Australia's mounting national debt pile, which now approaches $1 trillion dollars. The CEFC is tasked with generating returns of 2 to 3 per cent above the five-year government bond rate yet it does not release data on its investment performance, raising questions as to whether it is achieving its benchmark. Had the CEFC actually achieved its target mandate, it would today be managing well over $50 billion. It is classified as an off-budget entity on the assumption that it generates commercial returns yet no robust evidence supports this premise. The Government cannot have it both ways. It cannot say that the CEFC does not crowd out private capital at the same time as spruiking that private money is freely flowing. If private money is flowing, logic dictates that there can no longer be a case for the CEFC. When the CEFC was formed, clean energy investment faced considerable hurdles: capital was scarce, perceived risks were high, and the technologies were still emerging. Today, the landscape has fundamentally changed. Private capital is plentiful and actively flowing into renewable projects. Risk-adjusted returns are attractive, and technologies have matured. Simply, anye market failure that once may have justified government involvement no longer exists. There is another contradiction with the CEFC — this time between its stated goals and its actual accountability. While it claims to support Australia's transition to net zero emissions by 2050, it has yet to produce clear, measurable data demonstrating emissions reductions attributable to its activities. Despite more than a decade of operation, its reports and public statements are heavy on references to 'net zero' but light on verifiable outcomes. For an organisation that purports to be outcomes-focused, this lack of transparent emissions reduction data is striking. In focusing on activity rather than results, the CEFC serves as a textbook example of Milton Friedman's observation that 'nothing is so permanent as a temporary government program.' Its persistence appears to reflect not market need, but a desire to preserve high-paying public sector jobs and ongoing benefits to grifters and rent-seekers. Effectiveness and efficiency comparisons to the Future Fund are also illuminating. The Future Fund publishes quarterly portfolio performance reports while the CEFC provides no performance information. In terms of scale, the Future Fund manages $300 billion with 305 employees, whereas the CEFC manages $30 billion with 152 staff. Such contrasts are striking. Proponents may argue that the CEFC reduces project financing costs or facilitates complex transactions. But at what cost to taxpayers. And for how long must the public subsidise a now-thriving, profitable industry? Each resource consumed by the CEFC is a resource not used elsewhere for better purposes. This means that rather than closing investment gaps, the CEFC now just distorts the market. By supplying subsidised capital backed by taxpayers, it competes with private investors, crowding them out and diminishing market discipline. In doing so, it transfers financial risk from the private sector to the taxpayer. Considering mounting budgetary pressures, there is little justification for maintaining a government-run, taxpayer-funded 'green bank.' Especially when the private sector is already well-equipped to drive the clean energy transition, free from the moral hazards and political interference associated with public funding. Every dollar committed to a redundant institution like the CEFC is a dollar not used to reduce public debt or fund essential services. The CEFC may have had a valid role in 2012. But in 2025, that role has essentially vanished. It is time to shutter the CEFC, liquidate its assets, reduce national debt, and allow the private market to operate without unnecessary government intervention. Dimitri Burshtein is a principal at Eminence Advisory and former government policy analyst. Alex Sanchez is an economist and former adviser to the Albanese Government.
The Advertiser
16-06-2025
- Business
- The Advertiser
Green tick: Australian net-zero projects to be rated
The environmental credentials of projects across six industries, from mining to manufacturing, will be assessed and rated under a system experts say could boost international investment in Australia. The Australian Sustainable Finance Institute released its long-anticipated sustainable finance taxonomy rules on Tuesday, with its chief executive hailing the move a "transformative moment" for green investments. The framework will be tested in an eight-month pilot by a group of Australian financial institutions, including the nation's four major banks, the Clean Energy Finance Corporation, and superannuation firms Rest and HESTA. The announcement follows the development of similar rules for green investments in 47 countries, including China and Singapore, and forecasts Australia could boost its revenue with green metal exports. The sustainable finance taxonomy rules were developed by the institute across 20 months, led by a 25-member technical expert group. Unlike rules in other nations, the Australian taxonomy will classify projects in six sectors: mining, minerals and metals, electricity generation and supply, building and construction, manufacturing, transport and agriculture. Australian Sustainable Finance Institute chief executive Kristy Graham said assessing projects within the uniquely Australian categories would be vital to ensuring local and international investors could be confident about their claims. "Australia needs to attract a lot of capital to support our net-zero transition," she told AAP. "It is a global race for capital and many countries are a bit ahead of us. "The taxonomy is a framework that credibly, using a scientific basis, defines those assets and activities that are in line with that net-zero transition so both Australian investors and international investors can identify and channel capital towards those activities." The framework, which Ms Graham said would be "transformative" for the Australian green investment market, is designed to help businesses assess whether projects can be classified as green or transition activities. The taxonomy includes rules to set social safeguards, such as engagement with First Nations people, and to exclude projects that cause significant environmental harm. Having rules to rate and classify green projects could boost international investment in net-zero projects, Clean Energy Finance Corporation chief executive Ian Learmonth said, as the framework was compatible with international standards. "It is an important step in building further confidence in Australia's transition to net zero in international markets," he said. "The taxonomy facilitates investors and business to work in concert and to channel capital into credible, net-zero-aligned and transition activities." The Australian framework would also be compatible with the Climate Bonds Initiative's certification scheme, its co-founder Sean Kidney said, to "support investor confidence". Forty-seven nations use sustainable finance taxonomies to assess environmental projects following the launch of the European Union's framework in 2020. The environmental credentials of projects across six industries, from mining to manufacturing, will be assessed and rated under a system experts say could boost international investment in Australia. The Australian Sustainable Finance Institute released its long-anticipated sustainable finance taxonomy rules on Tuesday, with its chief executive hailing the move a "transformative moment" for green investments. The framework will be tested in an eight-month pilot by a group of Australian financial institutions, including the nation's four major banks, the Clean Energy Finance Corporation, and superannuation firms Rest and HESTA. The announcement follows the development of similar rules for green investments in 47 countries, including China and Singapore, and forecasts Australia could boost its revenue with green metal exports. The sustainable finance taxonomy rules were developed by the institute across 20 months, led by a 25-member technical expert group. Unlike rules in other nations, the Australian taxonomy will classify projects in six sectors: mining, minerals and metals, electricity generation and supply, building and construction, manufacturing, transport and agriculture. Australian Sustainable Finance Institute chief executive Kristy Graham said assessing projects within the uniquely Australian categories would be vital to ensuring local and international investors could be confident about their claims. "Australia needs to attract a lot of capital to support our net-zero transition," she told AAP. "It is a global race for capital and many countries are a bit ahead of us. "The taxonomy is a framework that credibly, using a scientific basis, defines those assets and activities that are in line with that net-zero transition so both Australian investors and international investors can identify and channel capital towards those activities." The framework, which Ms Graham said would be "transformative" for the Australian green investment market, is designed to help businesses assess whether projects can be classified as green or transition activities. The taxonomy includes rules to set social safeguards, such as engagement with First Nations people, and to exclude projects that cause significant environmental harm. Having rules to rate and classify green projects could boost international investment in net-zero projects, Clean Energy Finance Corporation chief executive Ian Learmonth said, as the framework was compatible with international standards. "It is an important step in building further confidence in Australia's transition to net zero in international markets," he said. "The taxonomy facilitates investors and business to work in concert and to channel capital into credible, net-zero-aligned and transition activities." The Australian framework would also be compatible with the Climate Bonds Initiative's certification scheme, its co-founder Sean Kidney said, to "support investor confidence". Forty-seven nations use sustainable finance taxonomies to assess environmental projects following the launch of the European Union's framework in 2020. The environmental credentials of projects across six industries, from mining to manufacturing, will be assessed and rated under a system experts say could boost international investment in Australia. The Australian Sustainable Finance Institute released its long-anticipated sustainable finance taxonomy rules on Tuesday, with its chief executive hailing the move a "transformative moment" for green investments. The framework will be tested in an eight-month pilot by a group of Australian financial institutions, including the nation's four major banks, the Clean Energy Finance Corporation, and superannuation firms Rest and HESTA. The announcement follows the development of similar rules for green investments in 47 countries, including China and Singapore, and forecasts Australia could boost its revenue with green metal exports. The sustainable finance taxonomy rules were developed by the institute across 20 months, led by a 25-member technical expert group. Unlike rules in other nations, the Australian taxonomy will classify projects in six sectors: mining, minerals and metals, electricity generation and supply, building and construction, manufacturing, transport and agriculture. Australian Sustainable Finance Institute chief executive Kristy Graham said assessing projects within the uniquely Australian categories would be vital to ensuring local and international investors could be confident about their claims. "Australia needs to attract a lot of capital to support our net-zero transition," she told AAP. "It is a global race for capital and many countries are a bit ahead of us. "The taxonomy is a framework that credibly, using a scientific basis, defines those assets and activities that are in line with that net-zero transition so both Australian investors and international investors can identify and channel capital towards those activities." The framework, which Ms Graham said would be "transformative" for the Australian green investment market, is designed to help businesses assess whether projects can be classified as green or transition activities. The taxonomy includes rules to set social safeguards, such as engagement with First Nations people, and to exclude projects that cause significant environmental harm. Having rules to rate and classify green projects could boost international investment in net-zero projects, Clean Energy Finance Corporation chief executive Ian Learmonth said, as the framework was compatible with international standards. "It is an important step in building further confidence in Australia's transition to net zero in international markets," he said. "The taxonomy facilitates investors and business to work in concert and to channel capital into credible, net-zero-aligned and transition activities." The Australian framework would also be compatible with the Climate Bonds Initiative's certification scheme, its co-founder Sean Kidney said, to "support investor confidence". Forty-seven nations use sustainable finance taxonomies to assess environmental projects following the launch of the European Union's framework in 2020. The environmental credentials of projects across six industries, from mining to manufacturing, will be assessed and rated under a system experts say could boost international investment in Australia. The Australian Sustainable Finance Institute released its long-anticipated sustainable finance taxonomy rules on Tuesday, with its chief executive hailing the move a "transformative moment" for green investments. The framework will be tested in an eight-month pilot by a group of Australian financial institutions, including the nation's four major banks, the Clean Energy Finance Corporation, and superannuation firms Rest and HESTA. The announcement follows the development of similar rules for green investments in 47 countries, including China and Singapore, and forecasts Australia could boost its revenue with green metal exports. The sustainable finance taxonomy rules were developed by the institute across 20 months, led by a 25-member technical expert group. Unlike rules in other nations, the Australian taxonomy will classify projects in six sectors: mining, minerals and metals, electricity generation and supply, building and construction, manufacturing, transport and agriculture. Australian Sustainable Finance Institute chief executive Kristy Graham said assessing projects within the uniquely Australian categories would be vital to ensuring local and international investors could be confident about their claims. "Australia needs to attract a lot of capital to support our net-zero transition," she told AAP. "It is a global race for capital and many countries are a bit ahead of us. "The taxonomy is a framework that credibly, using a scientific basis, defines those assets and activities that are in line with that net-zero transition so both Australian investors and international investors can identify and channel capital towards those activities." The framework, which Ms Graham said would be "transformative" for the Australian green investment market, is designed to help businesses assess whether projects can be classified as green or transition activities. The taxonomy includes rules to set social safeguards, such as engagement with First Nations people, and to exclude projects that cause significant environmental harm. Having rules to rate and classify green projects could boost international investment in net-zero projects, Clean Energy Finance Corporation chief executive Ian Learmonth said, as the framework was compatible with international standards. "It is an important step in building further confidence in Australia's transition to net zero in international markets," he said. "The taxonomy facilitates investors and business to work in concert and to channel capital into credible, net-zero-aligned and transition activities." The Australian framework would also be compatible with the Climate Bonds Initiative's certification scheme, its co-founder Sean Kidney said, to "support investor confidence". Forty-seven nations use sustainable finance taxonomies to assess environmental projects following the launch of the European Union's framework in 2020.
Yahoo
20-04-2025
- Business
- Yahoo
Officials unveil billion-dollar plan to address long-neglected issue: 'It's time for strong policies'
Australia's clean energy industries are set to undergo a major expansion, as the government has allocated AU $2 billion (US $1.2 billion) in the latest budget to invest in solar and storage, along with other planet-friendly technologies. As PV Magazine Australia reported, the 2025-26 federal budget has committed the funds to the Clean Energy Finance Corporation, an Australian government-owned green bank. The funding will go toward private sector investments in wind, solar, green hydrogen, and electrification projects. That's in addition to nearly AUD$37 million (USD$22.7 million) to improve grid infrastructure and another AUD$10 million (USD$6.1 million) toward the accelerated connections fund, which aims to address grid access delays and boost efficiency. Green metal production will also receive financial support, with the AUD$1 billion (USD$600 million) green iron investment fund helping to accelerate Australia's transition to green steel. Climate energy finance director Tim Buckley told PV Magazine that the CEF is thankful for the green metals investments but "a lot more is needed" to support domestic clean energy technology manufacturing. "From here, there are abundant opportunities for the Federal Government to grow Australia's clean economy for generations to come through win-win solutions for our economy and climate," Climate Council economist Nicki Hutley told the magazine. A portion of the funds will be allocated to hydrogen and critical minerals tax incentives, low-pollution liquid fuels, and investments in renewable energy manufacturing, including battery and storage technologies. The impressive commitment to clean energy will benefit Australia's economy and ensure better health for people and the planet. As the transition to solar, wind, and other renewable energy sources continues to gain momentum, it's an excellent time to invest in sustainability-focused businesses and support eco-friendly initiatives. Governments provide financial backing for industries, but everyday people can drive positive change in the marketplace. "Now that we're securing the future of our industry with these investments, it's time for strong policies that put domestic manufacturers first," Australian Workers' Union national secretary Paul Farrow told PV. Farrow added that "stronger local procurement requirements" are needed to help steelworks and aluminum smelters to continue operations and grow. Meanwhile, using Australian-made materials for public infrastructure "makes perfect sense" for job security and creation. Should the government continue to give tax incentives for energy-efficient home upgrades? Absolutely No Depends on the upgrade I don't know Click your choice to see results and speak your mind. "[The Australian Energy Market Operator] expects investment in new energy infrastructure to support more than 60,000 energy jobs over the next 20 years, with the retirement of coal from our system prior to 2040," said CEFC CEO Ian Learmonth in a statement, adding that CEFC investments will help in the move to more sustainable energy. Join our free newsletter for good news and useful tips, and don't miss this cool list of easy ways to help yourself while helping the planet.
